In a recent interview with IGN, Xbox Co-Creator has revealed that Microsoft, before deciding to create their own Video Game Console, had approached Nintendo and Sony, offering to handle software and networking while Nintendo and Sony would handle the hardware, ultimately both companies decline Microsofts offer.
“When we first started thinking about doing Xbox we met with Nintendo and we sat down with Iwata and others and we said, ‘This is what we want to do. Could we partner? Could we work together on this?’ And basically they said no.”
“Then Bill [Gates] met with Sony,” Fries added. “Same deal. ‘Can we work together? Can we partner?’ And they said no.”
– Xbox co-creator Ed Fries